Courtesy of Mish.
The ECB statistical data warehouse released Target2 Balance figures today.
The numbers are reflective of intensifying capital flight in Italy and Spain.
The above charts shows most of the major countries, not all of them.
Italy’s target2 hit a record low -€326.9 billion in July. This is a 6th consecutive monthly record for Italy, minimum, possibly dating back to 2nd quarter of 2015.
Spain’s target2 deficit hit -€313.6 billion. In 2012 Spain hit -€337.3 billion.
Target2 Discussion
No discussion of eurozone problems would be complete without a discussion of Target2, an abomination created by the eurozone founders and one of the fundamental flaws of the euro.
Target2 stands for Trans-European Automated Real-time Gross Settlement System. It is a reflection of capital flight from the “Club-Med” countries in Southern Europe (Greece, Spain, and Italy) to banks in Northern Europe.
